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Is it better to invest my money in Mutual Funds or in Stocks and shares? Which one of these two investments will be able to withstand the occasional crashes in stocks market?

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I am new to investing in Mutual funds or stocks. In the past, investing in savings account and GICs under the Tax Free Saving Account was all I knew. Sure, the amount of interest I get from savings and GICs accounts were minimum but I had the peace of mind that my money will still be there, when I needed them. I learned that with mutual funds and stocks, there is no guarantee of getting back the principal amount i invested. In fact, there is every possibility,  that i could go into losses.

Lately I have been feeling brave enough to try out new riskier investments such as mutual funds and stocks, shares in companies. I am a complete newbie when it comes to risky investments, which is why I want to choose between the less riskier type of investments. I don't have the stomach to go for aggressive investments.

One of my friends explained to me that due to yearly inflation, the amount of interest I earned from savings accounts and GICs is not worth much. Looking at the price of commodities and essential goods going upwards, after adjustments, the interest i earned from my savings account is in fact, negligible if we factor in the yearly price inflation.

I personally feel that riskier investment is the way to go for me, as there is the possibility of earning a lot more money in much shorter period of time. I just need to choose between the easier to understand type of investment,  for me it is either mutual funds or the companies stocks and shares. Will someone at least guide me to choose the right type of investment to grow my money faster?
asked in Whitehorse by Holly

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